CPIM Distribution Planning 4

Question 1

The Distribution Requirements Planning (DRP) system extends MRP logic to distribution by:

Accepted Answer

Planning time-phased replenishment orders across the distribution network

Answer

DRP applies MRP time-phasing logic to distribution, netting demand against on-hand inventory and planned receipts to generate replenishment orders.

Question 2

A company decides to implement vendor-managed inventory (VMI). Who takes responsibility for maintaining stock levels at the customer's location?

Accepted Answer

The supplier or vendor

Answer

In VMI, the supplier monitors the customer's inventory levels and takes responsibility for replenishment decisions within agreed parameters.

Question 3

Which of the following best describes 'postponement' as a distribution strategy?

Accepted Answer

Delaying final product configuration or customization until closer to the point of demand

Answer

Postponement delays differentiation activities (labeling, assembly, customization) until actual demand is known, reducing finished goods inventory risk.

Question 4

Collaborative Planning, Forecasting and Replenishment (CPFR) is designed to:

Accepted Answer

Align trading partners through shared data and joint forecasting to improve supply chain performance

Answer

CPFR is a collaborative business model where trading partners share forecasts, plans, and data to improve forecast accuracy and reduce stockouts.

Question 5

In distribution planning, 'dead stock' refers to:

Accepted Answer

Slow-moving or obsolete inventory with no recent customer demand

Answer

Dead stock is inventory that has not sold or moved within a defined period and may represent excess, obsolete, or discontinued items.

(CPIM) Certified in Planning and Inventory Management Practice Test

(CPIM) Certified in Planning and Inventory Management Practice Test

CPIM Distribution Planning 4